Wall Street moves higher as tech gains offset weak economic data

By Tanya Agrawal

REUTERS - Wall Street was higher in late morning trading on Monday as gains in technology stocks, led by Apple, more than offset weak economic data and pushed the Nasdaq to another record high.

Apple shares jumped as much as 1.8 percent to a record high of $146.29, boosting all the three major Wall Street indexes. Apple is due to report its results on Tuesday.

The S&P 500 technology index was up 0.6 percent - one of only four among the 11 major S&P 500 sectors to post gains.

The other sectors were kept in check by weak construction spending and manufacturing data that came on the heels of weak first-quarter GDP data on Friday and ahead of the monthly jobs data at the end of this week.

Construction spending unexpectedly fell in March from a record high amid a pause in private construction investment after five straight months of increases.

Other data showed the ISM manufacturing activity index fell to its lowest level since December while consumer spending was unchanged in March for a second straight month and a key inflation measure recorded its first monthly drop since 2001.

The industrials and materials indexes were little changed.

"The economic data today is causing some investor nervousness ahead of the jobs report this Friday," said Matt Miskin, senior capital markets research analyst at John Hancock Investments in Boston.

"While we're starting the week of on a bit of weak economic news, the markets may turn back to corporate fundamentals as corporate earnings are still coming in strong."

At 10:51 a.m. ET (1451 GMT) the Dow Jones Industrial Average was up 20.37 points, or 0.1 percent, at 20,960.88.

The S&P 500 was up 5.27 points, or 0.22 percent, at 2,389.47 and the Nasdaq Composite was up 29.56 points, or 0.49 percent, at 6,077.17.

Trading volume is expected to be light, with many markets in Asia and Europe closed for Labor Day, but will pick up through the week as major earnings reports and economic data pour in.

Overall, profit at S&P 500 companies are estimated to have risen 13.6 percent in the first quarter, the most since 2011, according to Thomson Reuters I/B/E/S.

Tribune Media jumped 6.1 percent to $38.79 after Reuters reported Twenty-First Century Fox is in talks with Blackstone to buy the television station operator. Fox shares were down 0.49 percent at $30.39.

Diamond Offshore Drilling fell 4.9 percent to $13.71 after reporting a lower quarterly profit.

Advancing issues outnumbered decliners on the NYSE by 1,577 to 1,117. On the Nasdaq, 1,494 issues rose and 1,137 fell.

The S&P 500 index showed 29 new 52-week highs and eight new lows, while the Nasdaq recorded 91 new highs and 38 new lows.

(Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D'Souza)